Shareholders of Neimeth International Pharmaceuticals Plc have approved a fresh capital raising programme of up to N30bn, expanding the company’s total fundraising capacity to N50bn as the pharmaceutical manufacturer intensifies efforts to finance expansion projects, complete its new manufacturing facility, and strengthen its balance sheet.
The approval was granted at the company’s 67th Annual General Meeting (AGM) held virtually on Thursday, where shareholders passed a series of special resolutions authorising the Board of Directors to raise the funds through a combination of equity and debt instruments, subject to regulatory approvals.
Under the resolution, Neimeth’s board is empowered to raise the additional capital through public offers, rights issues, private placements, commercial papers, bonds, convertible and non-convertible securities, medium-term notes, and other financing instruments in tranches and on terms it considers appropriate.
The fresh N30bn approval is in addition to an earlier N20bn capital raising mandate approved by shareholders in June 2025.
Of the earlier approval, the company has already raised approximately N2.44bn through a rights issue, leaving an unutilised balance of N17.56bn.
The new approval effectively increases the company’s aggregate fundraising capacity to N50bn, with about N47.56bn now available for future capital raising initiatives.
Shareholders also approved provisions allowing any future public offers and rights issues to be underwritten on a standby basis to ensure full subscription.
They further waived pre-emptive rights on any unsubscribed shares arising from future rights issues, enabling the company to allocate such shares to interested investors where necessary.
Speaking at the AGM, Chairman of Neimeth International Pharmaceuticals Plc, Mr. Christopher Oshiafi, said the company was entering a new growth phase backed by stronger financial performance, improved investor confidence, and ambitious expansion plans.
According to him, the pharmaceutical sector emerged as one of the strongest-performing segments of the Nigerian capital market in 2025, with four listed pharmaceutical companies delivering returns exceeding 100 per cent despite broader market volatility.
Oshiafi noted that Neimeth ranked among the top-performing pharmaceutical stocks on the Nigerian Exchange (NGX), recording a 169 per cent year-to-date gain.
The company’s share price rose from N2.29 at the beginning of the year to N6.15, lifting its market capitalisation to N26.3bn and placing it among the top 25 performing stocks on the exchange.
He attributed the rally to renewed investor confidence in the company’s operational turnaround and earnings outlook following years of subdued performance.
The chairman also announced a significant improvement in the company’s 2025 financial results, with revenue rising by 64 per cent to N7.37bn from N4.49bn in 2024.
Neimeth returned to profitability during the year, posting a profit after tax of N976.4m compared to a loss of N885.3m recorded in the previous year.
Gross profit increased to N3.07bn from N1.96bn, while operating profit surged to N2.6bn from just N18.9m in 2024.
Profit before tax stood at N1.3bn, while earnings per share improved to 23 kobo from a loss per share of 21 kobo a year earlier.
A major contributor to the improved performance was the company’s successful restructuring of its foreign currency-denominated obligations.
Following the restructuring exercise, Neimeth recorded a foreign exchange gain of N214.8m in 2025, reversing the N2.05bn foreign exchange loss suffered in 2024.
Providing further insight into the company’s financial recovery, Managing Director, Pharm. Valentine Okelu, said the debt restructuring programme significantly reduced exposure to exchange rate volatility and strengthened the company’s financial position.
He explained that management undertook extensive negotiations with lenders to convert major foreign currency liabilities into naira-denominated obligations, a move that substantially improved earnings and enhanced long-term sustainability.
“One of the most significant milestones achieved during the year was the successful conversion of major foreign currency-denominated exposures into naira obligations and the restructuring of the company’s debt obligations,” Okelu said.
Despite challenges posed by high financing costs, energy expenses, infrastructure deficits, and liquidity constraints, he noted that management remained focused on improving operational efficiency, strengthening manufacturing processes, and ensuring product availability across the market.
A key component of Neimeth’s growth strategy remains the ongoing construction of its pharmaceutical manufacturing facility in Amawbia, Anambra State.
The company disclosed that part of the proceeds from the recently concluded rights issue has been earmarked for the project, while additional funding will be required to accelerate completion.
Upon completion, the facility is expected to meet World Health Organisation (WHO) standards and serve as a major pharmaceutical manufacturing hub capable of supporting Nigeria’s healthcare needs and positioning the company to benefit from opportunities under the African Continental Free Trade Area (AfCFTA).
The company also disclosed that shareholders had earlier approved the reclassification of N1.99bn from the Share Premium Account to the Retained Earnings (Losses) Account at a court-ordered meeting held on March 31, 2026. Management said the move would help eliminate accumulated losses, strengthen the balance sheet, and improve the company’s capacity to resume dividend payments in the future.
Looking ahead, Neimeth said its priorities for 2026 include sustaining profitability, reducing debt levels, improving operational efficiency, optimising production processes, strengthening working capital management, and introducing new products into the market.
The company is also preparing to celebrate its 70th anniversary in 2027, marking nearly seven decades of operations in Nigeria since its establishment as Pfizer Products Plc., a milestone management says reflects the resilience and enduring legacy of one of Nigeria’s oldest pharmaceutical manufacturers.
